Semotus Solutions Reports 2006 Fiscal Year End Results

Year of Acquisitions, Integration and Execution Delivers 35% Revenue Growth and Improved Gross Profit Margins


LOS GATOS, Calif., June 28, 2006 (PRIMEZONE) -- Semotus Solutions (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today reported its results for the fiscal year ended March 31, 2006.

Financial highlights for the fiscal year ended March 31, 2006 compared to the fiscal year ended March 31, 2005:


  --  Revenue increased 34.7% to $2.43 million, up from
      $1.81 million.
  --  Gross profit margin on revenue improved to 82% from 80%.
  --  Net loss rose to $1.4 million, or $0.05 loss per basic
      and diluted share, from $654,000, or $0.03 loss per basic
      and diluted share.

As of March 31, 2006, the Company had approximately $1.6 million in cash and receivables, working capital of approximately $504,000 and stockholders' equity of $3.9 million.

Anthony LaPine, Chairman and CEO of Semotus, noted, "Looking back on the 2006 fiscal year, it may best be described as a year defined by acquisition, integration and execution. Following the acquisitions of Expand Beyond in March 2005 and Clickmarks in June 2005, we concentrated on logically integrating our business operations to eliminate unnecessary overhead expense and redundant resources. Next, we focused on evaluating each of the respective customer bases to reduce the economic impact of any and all unprofitable business relationships. Once this was accomplished, Semotus then turned its attention to uniting its expanded technology portfolio to create a comprehensive enterprise mobility suite of products that both blends and complements the strengths of the HipLink XS product family, the Global Market Pro product family, Expand Beyond's PocketDBA and PocketAdmin messaging solutions, and Clickmarks' powerful development tools for automating workflows and improving information access for employees and customers."

"In the third and fourth quarters of 2006, Semotus then set to executing a refined and newly clarified sales and marketing plan and expanding its global marketing reach," continued LaPine. "As a result, the Company developed industry-specific marketing strategies and collateral material designed to promote our highly differentiated, scalable mobility solutions for application in those enterprises operating in healthcare, legal, government, retail, financial, security, transportation and large field sales and IT-driven organizations. Moreover, Semotus established key collaborations with new strategic marketing partners in Japan and Australia, both who have begun to attract and win new customers for the Company's advanced enterprise mobility solutions in the international marketplace."

Concluding, LaPine added, "Although 2006 proved to be a very challenging year for Semotus in many regards, so, too, has it been one characterized by careful and methodical planning and execution to achieve enduring growth and prosperity. The investments we have made in the acquisitions of Expand Beyond and Clickmarks provided the necessary framework -- at a tenth of the price it would have cost to expand our product platform in-house -- to help solidify Semotus' long term value proposition to our customers. Moreover, each day, we focus on strengthening this framework, while remaining attentive to controlling costs and maintaining our strong margins. In 2007, we are resolved to leveraging the hard work that has been done to establish Semotus' foundation for growth and materially improve our global market penetration. There is still much hard work ahead of us, and we remain absolutely dedicated to achieving this task."

Semotus will host a teleconference this afternoon, June 28, 2006, beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing 1-512-225-3176 and then entering the access code 950321# or via the Internet at www.semotus.com. For those unable to participate at that time, a replay of the web cast will be available for 90 days on www.semotus.com.

About Semotus Solutions

Founded in 1993, Semotus Solutions is the premier provider of software for the mobile enterprise, connecting employees to critical business systems, information and processes. Semotus has a Fortune 1000-installed customer base and hundreds of corporate clients including Lockheed Martin, Blue Cross Blue Shield, Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan Chase and The United Nations. Semotus Solutions' software provides mobility, convenience, efficiency and profitability in the areas of workforce automation, finance, health care and m-commerce. For more information on the Company, please visit the following web sites: http://www.semotus.com; http://www.hiplinkwireless.com; http://www.clickmarks.com; http://www.xb.com.

This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.



            

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